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ASX 200 falls 0.8%, Aussie hits yearly low on hawkish Fed

Published 08/03/2023, 04:31 pm
Updated 08/03/2023, 04:33 pm
© Reuters.

By Oliver Gray 

Investing.com - The S&P/ASX 200 fell 59.9 points or 0.8% to 7,307.8 during Wednesday's session, snapping 3 sessions of consecutive gains as investors retreated after Fed Chair Powell noted over night that policymakers would continue to lift interest rates if inflation pressures and robust economic data persists.

Among stocks, energy led declines as Woodside Energy Ltd (ASX:WDS) shed 7.2% after announcing the retirement of directors Dr Sarah Ryan and Dr Christopher Haynes. Beach Energy Ltd (ASX:BPT) fell 0.4% and South32 Ltd (ASX:S32) lost 2.8%.

Materials retreated 1.1% as Rio Tinto Ltd (ASX:RIO) lost 0.1%, BHP Group Ltd (ASX:BHP) fell 0.6% and Fortescue Metals Group Ltd (ASX:FMG) dipped 1.4%.

In policy news, RBA governor Philip Lowe noted that policymakers are closer to pausing interest rate hikes amid increasing mortgage stress on households.

Among currencies, the Aussie was trading near yearly lows of 0.659.

On the bond markets, 10-year rates were at 3.748%.

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